In July 2024, we entered into a sublease agreement (the “Sublease”) for a new operating lease in the same campus as our current corporate headquarters. The Sublease has a contractual term of two years, expiring on June 30, 2026, unless earlier terminated. Pursuant to the Sublease, the base rent was abated for two full calendar months following the July 3, 2024 effective date of the Sublease. Thereafter, we are obligated to pay an aggregate of approximately $2.1 million in rent payments for the remaining ten months of the first year, with a 3% rent adjustment (not inclusive of rent abatement) in the second year of the lease. We are also required to pay approximately 38.37% of our share of monthly operating expenses. Upon commencement of the lease in July 2024, we recorded a ROU asset and lease liability of $4.6 million.

In October 2023, we entered into the Commercial Manufacturing and Supply Agreement with Lonza. We have concluded that this agreement contains an embedded lease and will be accounted for in accordance with ASC 842 Leases upon the commencement date. As of September 30, 2024, the lease had not commenced and, as such, no lease liability or ROU asset was recorded on the consolidated balance sheets and no operating lease expense was recorded on the consolidated statements of operations. See Note 4, “Commercial Manufacturing and Supply Agreement,” for further details.

In September 2023, we entered into an assignment and assumption of lease agreement (the “Assignment Agreement”) for a new operating lease in the same building as our current corporate headquarters. The assumed lease has an original contractual term of 10 years, expiring on November 30, 2031, unless earlier terminated. Pursuant to the Assignment Agreement, the base rent was abated for three full calendar months following the October 1, 2023 effective date of the Assignment Agreement. Thereafter, we are obligated to pay an aggregate of approximately $1.9 million in rent payments for the remaining nine months of the first year, with a 3% rent adjustment (not inclusive of rent abatement) every year thereafter. Upon commencement of the lease in October 2023, we recorded a ROU asset and lease liability of $16.7 million and $16.8 million, respectively.

In January 2021, we entered into a lease agreement for our current corporate headquarters facility located in San Carlos, California and a license agreement for temporary lab and office space in Palo Alto, California. The lease term for our current corporate headquarters facility began on December 3, 2021 and expires on December 31, 2025. We have two 60-month renewal options. We extended the license agreement for our temporary headquarters in the Palo Alto office by 60 days to March 3, 2022 to accommodate our relocation plan. The original term of the license agreement for the temporary space in Palo Alto terminated when the San Carlos office leasehold improvements were completed and we moved into our current corporate headquarters. These two agreements are accounted for as a combined lease because the contracts were negotiated as a package with the same commercial objective. Upon commencement of the San Carlos lease in December 2021, we recorded a ROU asset and lease liability of $28.4 million and $12.9 million, respectively.

Information related to our leases are as follows (dollar amounts in thousands):


	Three Months Ended			Nine Months Ended
		September 30, 2024		September 30, 2023		September 30, 2024			September 30, 2023
Cash paid for operating lease liabilities		$	3,614	$	1,671	$	8,406		$	5,013

Weighted-average remaining lease term (in years)						5.03			2.04
Weighted-average discount rate						8.3		%	7.6		%


Years ending December 31,	(in thousands)
Remainder of 2024	$	2,076
2025	12,522
2026	4,262
2027	2,986
2028	3,075
Thereafter	9,501
Total future undiscounted lease payments	34,422
Less: Imputed interest	(6,463)
Total lease liabilities	$	27,959

Rent expense recognized under the leases was $3.3 million and $1.9 million for the three months ended September 30, 2024 and 2023, respectively, and $8.7 million and $5.8 million for the nine months ended September 30, 2024 and 2023, respectively.